Tung Chee-hwa, Hong Kong's first leader after the city returned to Chinese rule, has died at the age of 89.

The former shipping scion took over the reins from the last British Governor Chris Patten in July 1997 when the UK handed Hong Kong back to China, ending more than 150 years of British control.

Tung's rocky tenure was marked by the Asian Financial Crisis, two major epidemics, and historic protests which attracted criticism of his administration. He eventually resigned in 2005.

Tung died on Tuesday night surrounded by loved ones, local media reported. His office described him as a man "devoted to his country and its people".

Born in Shanghai in 1937, Tung graduated with a mechanical engineering degree from Liverpool University in the UK before moving to the US, where he worked at General Electric for almost a decade.

In 1969, he moved to Hong Kong and worked in his father's shipping conglomerate, the Orient Overseas, eventually taking over the reins in 1979.

His political career began in 1992 when he was appointed a member of Patten's executive council.

Despite having little political experience, Tung was believed to be handpicked by Beijing to lead Hong Kong after the handover. He was seen as a loyalist, especially after China's state-run banks helped rescue his family business during a global slump in the mid-1980s.

During a reception at the Great Hall of the People in January 1996, China's then-president Jiang Zemin walked across a packed room to shake Tung's hands – a widely photographed gesture that at the time famously signalled Beijing's backing of Tung for the top job.

The Asian Financial Crisis hit shortly after Tung took over, which sent home prices diving. His administration was also beset by a series of public health challenges, including a bird flu outbreak from 1997 to 2002 and the 2003 outbreak of Sars, also known as Severe Acute Respiratory Syndrome.

But Tung's biggest political challenge took place in July 2003 during his second term, when half a million Hongkongers took to the streets to protest against a proposed national security law they feared would threaten their civic rights.

His administration abandoned the proposed legislation following the massive outcry, which also contributed to Tung stepping down in March 2005.

At the time his declining health was cited as a reason - but some said he was pressured by Beijing to step down.

Beijing ultimately imposed a national security law on Hong Kong in 2020, which authorities have argued is necessary to maintain stability. Critics however have called it "the end of Hong Kong" and say it has created a climate of fear in the city.

Tung's last public outing was in July 2021, at an event marking the 100th anniversary of the founding of the Chinese Communist Party. He underwent heart surgery months later, according to reports.

He is survived by his wife and three children.

Hong Kong's former chief executives have paid tribute to Tung. Leung Chun-ying, who led the city between 2012 and 2017, described him as a "benevolent" leader who "won people over with reason".

Carrie Lam, who was the chief executive from 2017 to 2022, said Tung's leadership made "a historic contribution with lasting benefits".

China's state news agency Xinhua called Tung a "renowned patriot, distinguished social activist, close friend of the Communist Party of China".

It also noted that Tung had served as one of many vice-chairmen of the Chinese People's Political Consultative Conference, China's top political advisory body, for four consecutive terms.